Malaysia's KWAP Loses Nearly RM200 Million in Indonesian Ag-Tech Scam

Malaysia's Kumpulan Wang Persaraan (Diperbadankan) (KWAP), the public servants' retirement fund, has fallen victim to an investment scam involving Indonesian agritech startup eFishery. The fund reportedly lost nearly RM200 million (approximately $47.7 million) after eFishery allegedly manipulated its financial reports to attract investment.

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The investment in eFishery was also joined by several leading international institutional investors and technology funds, including Temasek, SoftBank, 42XFund, and Northstar.

Prime Minister Datuk Seri Anwar Ibrahim confirmed that the investment decision was made after a thorough evaluation process, including verification of financial statements by certified international auditors. He noted that the investment consortium, which included KWAP, conducted independent due diligence to ensure the accuracy of all information. Prominent international investors like Temasek, SoftBank, 42XFund, and Northstar also participated, adhering to international standards of assessment, control, and governance.

Anwar was responding to a question from Wong Chen (PH-Subang) in the Dewan Rakyat regarding accountability for the investment losses. He stated that the investment consortium, including KWAP, has initiated firm actions, including legal proceedings, fund recovery, internal governance reviews, and strengthening controls. KWAP has conducted a comprehensive review of its investment assessment, approval, and monitoring processes, presenting the findings to its board for detailed discussion.

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KWAP has conducted a comprehensive review of its investment assessment, approval, and monitoring processes, and the results have been presented to the KWAP Board for detailed review and discussion.

"Follow-up actions have been taken in line with the institutional governance framework and accountability principles," Anwar said. He affirmed KWAP's commitment to managing retirement funds with transparency, integrity, and accountability, implementing improvements to enhance future investment protections. Previously, eFishery was promoted as a technology-driven aquaculture firm aiming to modernize fish and shrimp farming through digital solutions. However, its co-founder, Gibran Huzaifah, was sentenced to nine years in prison in Indonesia last year for breach of trust and money laundering.

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KWAP remains committed to managing the retirement funds of civil servants with transparency, integrity, and accountability. Improvement measures have been implemented aimed at strengthening protection for future investment interests.